The IMF said Thursday that the year-long conflict between Israel and Hamas has resulted in a “devastating impact on the economy” in the occupied West Bank and Gaza, including a nearly 90 percent decline in Gaza’s GDP.
“Preliminary official estimates suggest an 86 percent decline in gross domestic product in the first half of 2024,” said Julie Kozak, International Monetary Fund communications chief.
He said Gaza’s “civilian population continues to face dire socioeconomic conditions, a humanitarian crisis and inadequate aid delivery.”
In the West Bank, “the already dire prospects have worsened, and preliminary official data indicates a 25 percent decline in gross domestic product in the first half of 2024,” Kozak told reporters at a regular briefing.
Israel has been at war in Gaza since Hamas’ October 7 attack, which resulted in the deaths of 1,205 people in the country, mostly civilians, according to an AFP tally based on Israeli data, which also includes hostages killed in captivity. .
Israeli counterattacks in Gaza have killed at least 41,788 people, the majority of them civilians, according to figures provided by the Hamas-run territory’s health ministry. The UN has described the figures as reliable.
Israeli economy also hit
Israel’s economy has also been affected by the war, with the three main rating agencies downgrading its debt.
Israeli gross domestic product grew by 14 percent in the first three months of this year, after a 21 percent decline in the fourth quarter of 2023, official data shows.
But in the second quarter the growth slowed down to 0.7 percent.
Kozak also said that “In Lebanon, the recent intensification of the conflict is worsening the country’s already fragile macroeconomic and social situation.”
“We are monitoring the situation closely and it is a situation of great concern and a great deal of uncertainty,” he said.
Hamas ally Hezbollah began cross-border firing from Lebanon into Israel following Hamas’ October 7 attack. But the conflict escalated after Israel announced this week that its troops had launched “ground attacks” on parts of southern Lebanon, following days of heavy bombardment in areas across the country where the group has influence.
According to Lebanon’s health ministry, the bombing has killed more than 1,000 people and forced hundreds of thousands from their homes.
Pro-Hezbollah Iran fired nearly 200 rockets in a direct missile attack on Israel on Tuesday, prompting Netanyahu to warn that Tehran would have to pay.
Iran said it was in retaliation for the killing of Hezbollah leader Hassan Nasrallah in a massive bombing in south Beirut.
Oil prices rose on Thursday after US President Joe Biden said he was discussing possible Israeli attacks on Iranian oil facilities, just over a month before the US presidential election.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
